Higher price levels will eventually lead to lower interest rates as people reduce their demand for money
a. True
b. False
Indicate whether the statement is true or false
False
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In general, poor countries
A. receive development assistance in order to alleviate poverty. B. have secure property rights, which attract corporations expand their offices in their population centers. C. have slower productivity growth rates than wealthier countries, according to the convergence hypothesis. D. have highly skilled workforces.
If the market demand decreases for a good sold in a perfectly competitive market, firms in the market:
A. will be able to charge a higher price for their product. B. will receive a lower price for their product. C. will not be able to change their price. D. will not be affected by the change in demand.
A reduction in G or an increase in T would lead to lower real interest rates in the United States, a depreciating dollar, and, eventually, a smaller trade deficit..
Answer the following statement true (T) or false (F)
If taxes depend on income and the MPC is 0.8 and t is 0.4, the tax multiplier is
A. -1.54. B. -1.92. C. -2.5. D. -2.7.